Xianhe(603733) 信达证券·2025-02-26 11:58Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is expected to see a recovery in profitability, with contributions from its Guangxi and Hubei bases [2] - The growth path is clear, with a focus on the synergy between pulp and paper operations leading to efficiency improvements [2] - The company is positioned as a market leader with abundant orders, and the industry landscape is expected to accelerate concentration in 2025 [3] Financial Performance Summary - Total revenue is projected to grow from 8,553 million in 2023 to 16,637 million in 2026, reflecting a CAGR of 25.2% [4] - The net profit attributable to the parent company is expected to increase from 664 million in 2023 to 1,790 million in 2026, with a significant growth rate of 59.8% in 2024 [4] - The gross margin is anticipated to improve from 11.6% in 2023 to 16.0% in 2026 [4] - The company's PE ratio is projected to decrease from 21.94 in 2023 to 8.13 in 2026, indicating a more attractive valuation over time [4] Growth Drivers - The company plans to launch over 900,000 tons of paper production capacity and approximately 900,000 tons of pulp capacity from its Guangxi and Hubei bases [2] - The local wood resources in Guangxi and the exploration of reed pulp in Hubei are expected to provide cost advantages and improve production efficiency [2] - The company is likely to benefit from rising pulp prices and improved cost structures as it ramps up production in its new bases [2][3]